Genpact shares plunge on weak guidance despite Q1 beat

Published 07/05/2025, 22:16
Genpact shares plunge on weak guidance despite Q1 beat

Investing.com -- Genpact Limited (NYSE:G) saw its shares tumble 12.7% after the advanced technology services company issued disappointing guidance for the second quarter and full year 2025, overshadowing better-than-expected first-quarter results.

The company reported first-quarter adjusted earnings per share of $0.84, surpassing the analyst estimate of $0.78. Revenue for the quarter came in at $1.22 billion, slightly above the consensus estimate of $1.21 billion and up 7.4% YoY.

However, Genpact’s outlook for the coming periods fell short of expectations. For the second quarter, the company forecasts EPS of $0.84-$0.86, below the consensus of $0.86, and revenue of $1.21-1.233 billion, lower than the expected $1.248 billion.

The full-year 2025 guidance was also reduced, with EPS now projected at $3.41-$3.52, down from the previous $3.52-$3.59 range and below the $3.54 analyst consensus. Revenue expectations were lowered to $4.862-5.005 billion, compared to the prior $5.08 billion consensus.

Balkrishan "BK" Kalra, Genpact’s President & CEO, acknowledged the changing operating environment, stating, "Although the operating environment has changed since the beginning of the year, the strength of our business model and resilience of our strategy remain clear."

The company’s Data-Tech-AI segment showed strong growth, with revenues up 11.1% YoY to $582 million. Digital Operations revenue grew 4.2% YoY to $633 million.

Despite the market’s negative reaction, Genpact maintains its focus on innovation and client relationships. The company repurchased approximately 1.2 million common shares during the quarter for total consideration of approximately $63 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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